by Stephanie Wallcraft CarGurus https://www.cargurus.com
Selling a car can be a daunting task, but it doesn't have to be. If you're living in Ontario and looking to sell your car, this guide will help you navigate the process smoothly. From preparing your car for sale to finding the right buyer, we've got you covered.
When you’re selling a used car in Ontario, you’ll need your vehicle ownership document. The Ontario Ministry of Transportation refers to this as the vehicle permit. This document is green and is issued to you when you register your vehicle, either at a ServiceOntario location or at the dealership where you bought the car. This proves you own the vehicle and therefore have the right to sell it. Most drivers keep the vehicle permit in the glove box, so check there first if you’re not sure where you’ve placed yours.
In Ontario, a safety standard certificate (SSC) is required to transfer ownership of a vehicle from one person to another. Only a licenced mechanic who works at a shop with the designation Ontario Motor Vehicle Inspection Station can issue an SSC. This can be obtained either by the seller or the buyer. Typically, you as the vehicle seller will get an SSC so that you have it on hand to show to interested buyers. However, don’t be surprised if a buyer wants to get an inspection and certificate independently from a mechanic they trust.
Selling a car in Ontario means you’ll need to buy a Used Vehicle Information Package (UVIP). This package contains details about your vehicle such as the vehicle identification number (VIN), model year, make, model, colour, and engine specifications. It also outlines the vehicle registration history and states any lien information (money owing) on the vehicle as well, its average wholesale value, and the minimum amount the buyer will need to pay in sales tax upon purchase. It’s important to make sure this information is correct in your UVIP before you start the process of selling a used car in Ontario.
When selling a used car in Ontario, there are some laws in place, but most of them only apply when a licenced dealer is involved in the sale. In terms of protecting yourself when selling a car privately, you’re legally required to own the vehicle you’re selling and to provide the vehicle’s UVIP to the buyer. The most important factors are to ensure you provide all the necessary paperwork to the buyer, and that you represent yourself and the vehicle condition honestly. If it’s later found that you knowingly misrepresented any important facts during the sale process, the buyer could take you to court.
Traditionally, selling a car in Ontario meant either going to a car dealership or doing all of the work of listing and selling a vehicle yourself.
Recently, a third option has emerged: you can sell your car directly to an online-only used car retailer. Someone will come to inspect the car and take photographs, they’ll take care of creating the listing, and then they offer you a fair deal. They leave with your car, and you get paid quickly. Often, they’ll even assist with the paperwork. You can potentially make more money by listing the car yourself, but it takes a lot of time and effort. You can also go to a traditional car dealership and get paid immediately, but you usually won’t make as much money. Choosing an online car retailer offers an in-between option that’s a balance between profit and convenience.
If you’re considering the online-only route, take a look at the CarGurus Sell My Car service. Simply enter a few details about your car, and you’ll receive an immediate estimate of a price range we think you’ll get for your vehicle. You can then book an appointment, and one of our experts will come to you to inspect the vehicle, take a few photos, and collect some final details. We’ll then create the listing for you and distribute it to our network of dealer partners. After a few days, we'll let you know the best offer received for your car, and we’ll help you with the paperwork, send your payment, and arrange to pick up the vehicle. Better yet, the entire process is at no cost to you. In a matter of days and hassle-free, you’ll go from instant valuation estimate to empty driveway.
If your goal is to make every cent possible when selling a used car in Ontario, you may decide to sell your car on your own. These days, the most common way to do this is by creating a classified listing on a website such as Facebook Marketplace, Kijiji, Craigslist, or autoTRADER.ca.
You’ll need to follow the following steps, all of which are explained in more detail below and in our guide explaining how to sell your car in Canada:
If the most important factor for you when selling your used car in Ontario is to get paid as quickly as possible, you can sell your car to a used car dealer. To do this, you simply drive your car to a dealership, and they’ll tell you how much they’re willing to pay if you sell the car to them or trade it in for a new vehicle. This approach can be beneficial in that you’ll be paid quickly and the dealer will typically help with completing the paperwork and transferring ownership. However, this approach is almost always less profitable for you as the seller: the dealer is buying your car to make a profit from it, so they’ll offer you a percentage less than what they know they can get for selling it.
Cleaning your car thoroughly inside and out is important for making it more appealing to potential buyers. If you have a suitable space such as a garage or driveway, you can wash the car yourself. You can also take it to a detailing facility, or you can contact one of the newer mobile detailers, who will come to you to complete this service. Don’t forget to make sure the engine bay is clean. Attentive buyers will check this detail to see if it looks like your car’s engine has been receiving upkeep.
You’ll want to make sure any outstanding maintenance, warranty work, recalls or repairs have been completed before listing your car for sale. Buyers will pay more for cars that are turnkey and won’t need immediate attention. If you choose not to have any necessary repairs done for any reason, it’s important to disclose this in your ad and expect a slightly lower selling price to offset the cost you’re passing on to the buyer.
In Ontario, a car must receive a Safety Standards Certificate as outlined above before any change in ownership. It’s not strictly the responsibility of the seller to do this, but it’s the most common practice for the seller to complete this step before listing the vehicle to provide potential buyers with some peace of mind. That said, it’s also not unusual for a buyer to get a car inspected by their own trusted mechanic to get a second opinion before going through with the purchase.
At a minimum, you’ll need a UVIP and your vehicle permit before listing your car for sale, and you’re well-advised to get an SCC as well. You may also wish to gather your car’s service records together as well as paperwork on any warranties that may still apply to the vehicle since buyers are likely to ask for these details.
What is your car worth? Before you sell your car, it’s important to have a general idea of its value. That way, you can be confident you’re getting a fair deal. As outlined above, a dealer will offer you less for sale or trade-in value than what you can get if you sell your car privately, and selling your car online is likely to end up with a number in between these two options. It’s therefore a good idea to think of your car’s value as a range rather than a set number.
Your car’s make and model, model year, kilometres on the odometer, overall state of repair, and even its colour can have an impact on its value on the used vehicle market. When doing research, it’s important to consider your car’s details relative to those you’re viewing as examples to get a feel for your car’s estimated value.
To get a feel for your car’s fair market value, you can check a used vehicle valuation reference guide, or compare listings on popular used vehicle websites in your area to look at what nearby cars with similar attributes to yours are showing as an asking price. Remember that the value shown in your UVIP is the wholesale value, which is the estimated amount a dealer would pay when buying the car at a used vehicle auction where low prices are expected. When selling your used car in Ontario, you will almost always be able to ask for a higher price for your vehicle.
If you’re selling your car on a classifieds website, you’ll need to take your own photographs to add to the listing. A modern smartphone will be able to handle the job. A bright but overcast day and a neutral background will offer the most flattering backdrop, but be sure there are no personally identifying details to protect your privacy. Photograph the car from several different angles, including the front, back, and side, being sure to get some photos that show the entire car and some that provide close-ups of any nice details or special features. Be sure to take pictures of any imperfections as well, and grab a photo of the odometer to prove its current reading.
The next step in selling your car privately is to create an advertisement. In Ontario, you’ll most commonly list a car for sale on Kijiji Autos, Facebook Marketplace, and autoTRADER.ca. Craigslist and eBay Motors are alternative options.
Be sure to include the most important details such as the make, model, model year, and odometer reading. You’ll also want to state the trim level, the type of transmission, and whether it’s front-wheel drive (FWD), rear-wheel drive (RWD), or all-wheel drive (AWD). Craft a headline with as much of this information included as will fit within your chosen listing site’s character limits.
Don’t be afraid to be descriptive: you really can’t give too much information in a used vehicle ad! If there’s any equipment in your car that’s unusual for its age or vehicle type—think heated seats or smartphone integration—mention this prominently. Highlight your car’s fuel economy if it’s good, and mention whether you have service records and warranty documentation. Don’t forget to mention any modifications or potential issues as well, which will give potential buyers confidence that you’re an honest seller and let them make an informed decision. (Being explicit about this could also save you some legal hassle down the road.)
Finally, put an actual asking price—buyers often don’t like to respond to ads that say “Please contact”—and state upfront what forms of payment you’ll accept. Never accept personal cheques or e-transfers as they’re susceptible to fraud. Instead, ask for cash or bank drafts to protect yourself from scammers.
Until you’re confident you have a serious potential buyer on your hands, don’t give up any personal information about yourself. You’ll need to provide your name and address eventually to prove you own the vehicle, but you can protect yourself by putting this off until it becomes a necessary step in the sales process.
You’ll know a buyer is serious when they’re asking for test drives and inspections and for details such as service records and a UVIP. It’s a good idea to have documentation ready to forward upon request so the buyer will see you as equally serious about making the sale.
Arrange meetings for test drives during daylight hours and in busy places like malls or coffee shop parking lots. For your safety and to protect yourself from scams, it’s important to bring someone with you such as a spouse or a friend, especially in larger cities such as Toronto. You may wish to ask for some form of security before handing over the keys such as the potential buyer’s own house keys or a health card to ensure they have a reason to return with your vehicle.
Once it’s time to negotiate the best price, you’ll probably go through a couple of rounds before you and the buyer agree on a deal. This is where your research into your vehicle’s value becomes especially important. Go into this negotiation with an absolute minimum price you’re willing to accept for the vehicle. Stand firm on that limit, and don’t be afraid to walk away from a potential sale if a buyer isn’t negotiating fairly, doesn’t arrive punctually to arranged meetings, or otherwise treats you with disrespect. It’s not worth putting yourself at risk or losing out on a deal—there are more buyers out there!
When it comes time to receive payment, never accept personal cheques. They’re often used to commit fraud in vehicle sales and put you at significant risk. E-transfers are a safer option, but you likely can’t receive the full amount in a single transaction and it may be possible to cancel transfers with some financial institutions, so these can also cause issues in a private sale. Cash, certified cheques, or bank drafts are the safest and most recommended forms of payment to accept for used vehicle sales.
Once you and a buyer have agreed on a fair price, you’ll need to complete some documentation to finalize the process of selling your car in Ontario.
You are not required to pay any fees when you sell a used car in Ontario. Ownership transfer fees are the responsibility of the new owner, who will need to pay to register the vehicle and will also owe provincial sales tax at the time of registration.
Do I need to provide a Safety Standards Certificate (SSC) when selling my car in Ontario?
A safety standard certificate (SSC) is required to transfer ownership of a vehicle in Ontario. Either the seller or the buyer can go to a mechanic for this certificate, but the seller usually gets it so it will be available for review by potential buyers.
Do I need to disclose any accidents or damage to the buyer when selling my car in Ontario?
Yes. If you knowingly fail to disclose accidents or damage on a vehicle you sell, the buyer can take you to court for misrepresenting its condition. Note that a vehicle’s accident history is not listed in its UVIP. To review this information, you’ll need to purchase a vehicle history report such as Carfax.
Can I sell my car privately without a Used Vehicle Information Package (UVIP) in Ontario?
No. You’re required by law in Ontario to provide a Used Vehicle Information Package (UVIP) to the buyer when you sell a vehicle.
Stephanie Wallcraft is a multiple award-winning professional automotive journalist based in Toronto, Ontario, Canada. In addition to CarGurus Canada, her byline has appeared in major Canadian publications including the Toronto Star, National Post, and AutoTrader ca, among others. She is the President of the Automobile Journalists Association of Canada.
